HK Stock Market Move | Cement stocks lead the way in gains, with cement prices showing a downward trend in many domestic markets. Institutions are optimistic that prices will rebound after price increases are implemented.

Cement stocks are among the top gainers, as of the time of writing, CNBM (03323) rose by 6.84%, to 6.09 Hong Kong dollars; Anhui Conch Cement (00914) rose by 4.21%, to 25.26 Hong Kong dollars; Huaxin Cement (06655) rose by 3.66%, to 17.26 Hong Kong dollars; CR BLDG MAT TEC (01313) rose by 3.3%, to 1.86 Hong Kong dollars; WESTCHINACEMENT (02233) rose by 2.47%, to 3.32 Hong Kong dollars. On the news front, according to Cement Network reports, cement prices in many markets nationwide showed signs of decline last week. During the National Day holiday, there were frequent rains, and the implementation of price increases in places like Beijing and Tianjin was not ideal, with minimal actual changes in transactions. Demand in Northeast China was relatively weak, with price hikes being called for but not effectively implemented. In some markets in Ningxia and Shaanxi in Northwest China, prices stabilized after rises. Before the holiday, prices in many places in East China had increased by 20-30 yuan per ton, but now most have fallen back to pre-rise levels. Prices in Central and South China markets slightly declined, with attempts to increase in Hubei and Hunan. After significant price hikes in many markets in Southwest China, the extent of implementation has narrowed, and whether these prices can be maintained remains to be seen. Zhongjin stated that the average price of cement in China in September was 338 yuan per ton, up by 2 yuan per ton from the previous month. The gross profit per ton for cement companies in September was 58 yuan per ton, up by 3 yuan per ton; the industry is expected to benefit from marginal improvement in demand during the peak season and price increases. Tianfeng pointed out that in the first half of 25H1, the cement sector achieved revenue of 118.1 billion yuan, a year-on-year decrease of 7.7%, and a net profit attributable to the parent company of 5.2 billion yuan, a year-on-year increase of 1487%. The return on equity was 1.4%, an increase of 1.3 percentage points from the previous year, mainly benefiting from improvements in prices and costs. The bottom of the cement sector's fundamentals may have appeared, and with the dual forces of production restrictions and control on the supply side, as well as infrastructure support on the demand side, the industry is expected to show a trend of improvement in the second half of the year.